Chasing

I try to give you tools and examples when they are there, hopefully you find some use in them and put them in your own tool box.

Yesterday morning I said, if anything, I'd look at a weekly put to short the market in the morning right after we closed our IWM/QQQ calls, but that it would have to be day traded as the signal was just not strong enough to hold overnight, that was the right call as you can see by the market so far this morning, just because we can be right about a trade doesn't mean that trade is worth taking, unless like I said, you are very aggressive and very nimble.

The Dow-30

We were looking at shorting (Puts) the market around 10 a.m., but most traders chase, they need proof, lower lows/highs so most would have entered somewhere in the red area, a 120 point bump this morning causes some serious fear, for puts those traders would have been destroyed.